In an interview with Proactive's Stephen Gunnion (SG), Adriatic Metals' chief executive Paul Cronin (PC) discusses milestones at its soon-to-open Vares silver project
SG: Let's start with your upcoming milestones. When do you anticipate the first concentrate production at Vares?
PC: We're on track to produce our first concentrate by the second half of February.
It's a significant milestone for us, especially after overcoming some logistical hurdles, including delays in the Suez Canal.
Despite these challenges, our processing plant is now fully commissioned, and we're ready to begin production.
SG: Moving on to the production guidance, can you share the expectations for this year and beyond?
PC: Absolutely. For this year, which is our ramp-up phase, we're aiming to produce between 240,000 and 300,000 tonnes. We're stockpiling ore and are pleased with the grades we're seeing.
By the end of the year, we'll be at the plant's nameplate capacity. In 2025, we're looking to exceed our designed capacity, producing over 800,000 tonnes annually.
SG: That sounds promising. How has the partnership with Orion Funds shaped your financial strategy, especially in terms of debt payments?
PC: Our partnership with Orion Funds has been a key aspect of our financial strategy.
They've been extremely supportive, agreeing to defer our quarterly debt payments until December 2024. This aligns with our operational timeline and provides us with much-needed flexibility.
It's particularly significant following our recent drawdown of the last $30 million from our $120 million senior facility.
SG: Lastly, what are your thoughts on the future, particularly in managing underground mining challenges and the next resource update?
PC: We're very optimistic about the future. Our team has shown exceptional skill in navigating the complexities of underground mining.
We're looking forward to the next resource update, which we expect to announce around the time of our annual report in March.
We believe there's potential for growth and are confident in our team's ability to continue delivering excellent results.